Sources: German president to announce resignation

Feb 17, 2012, 9:46 GMT

Berlin - Sources close to German President Christian Wulff said he would resign Friday following persistent corruption allegations.

Chancellor Angela Merkel cancelled planned talks in Rome with the Italian premier, while the sources said he would announce his resignation in a statement to the press scheduled for 11 am (1000 GMT). Merkel was to give a separate statement at 11.30.

Public prosecutors on Thursday applied to lift Wulff's immunity following allegations over favours accepted from wealthy friends while he was premier of the state of Lower Saxony during 2003-10.

Wulff's resignation would place more pressure on Merkel, who picked him from relative obscurity for the post in 2010.

The corruption allegations against the president began in mid-December.

The latest involves allegations that he accepted a free holiday at a German beach resort from David Groenewold, a manager of film investment deals, in 2007.

Wulff denied the accusation last week, saying he paid in cash. But media reported that Groenewold had paid for the whole party on his credit card.

The allegation which first sparked the string of accusations was that he had accepted a loan from wealthy friends to finance the purchase of a house while premier of Lower Saxony.

Wulff had to admit that he had been economical with the truth during a 2010 disclosure about his business dealings and had hidden the fact that the initial loan came from the wife of a businessman friend, Egon Geerkens.

No offence has yet been proven but Wulff's seemingly cosy links with businessmen have caused disquiet.

His image was further tarnished when the tabloid Bild, Germany's most popular newspaper, revealed that Wulff had left voicemails on its editor's phone, threatening that reports about his home loans would put the two 'at war.'